IRS Halts Some Regulatory Work While Congress Mulls Tax Overhaul

The Treasury Department is holding off on some regulatory plans until there is more clarity on what will be included in a tax-and-spend package under development in Congress, according to a department official.

The regulatory work on pause includes rules affecting cross-border transactions, such as potential changes to regulations under tax code Section 385, aimed at preventing U.S. companies from moving profits offshore to avoid taxes, said Krishna Vallabhaneni, tax legislative counsel at Treasury.

The House Ways and Means Committee last week advanced a $2.1 trillion tax hike package that would make various changes to the way ...